Skybiotech Healthcare (512036)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter net loss is negligible (₹0 Cr), so the company is not burning large amounts of cash.
• Book value per share of ₹49.63 provides some tangible asset backing, though price is above it.
• Small market cap of ₹29 Cr means even a modest absolute revenue recovery could have a meaningful impact.
• Company still reports quarterly sales of ₹1 Cr, indicating it is not completely dormant.

Concerns

• Sales fell 61.90% year-on-year, with latest quarterly revenue just ₹1 Cr.
• ROE is -2.33% and ROCE is 0.00%, showing no return on capital employed.
• Piotroski F-Score of 2/9 indicates severe fundamental deterioration.
• P/B of 2.92 with negative earnings means investors are paying a steep premium to book for a loss-making entity.

AI Analysis

Reading Skybiotech's numbers, I am reminded of my rule: if you can't understand it, don't invest. Here, even the basics are worrying. This textile company reported sales of just ₹1 Cr in the latest quarter, down 61.90% from the prior year. A firm cannot build a moat on collapsing revenue. Profit is negative, albeit only around ₹0 Cr, which tells me the business is not in a catastrophic cash burn, but it is also not earning a rupee of return on equity. ROE is -2.33%, ROCE is 0.00%, and the Piotroski F-Score is a dreadful 2 out of 9. These are not the fingerprints of a franchise; they are the fingerprints of a business struggling to stay relevant. Valuation makes matters worse. At ₹145, the market cap is ₹29 Cr, while book value is ₹49.63 per share. That translates to a P/B of 2.92. Graham would never pay nearly three times book for a loss-making commodity business with no dividend and no visible competitive advantage. The P/E is meaningless when earnings are absent. There is no promoter holding data, so I cannot judge whether the people running the company have skin in the game. The 52-week range of ₹116.45 to ₹237.30 looks like a speculative punt, not a steady compounding machine. I will not label this a turnaround until I see sales stabilizing, positive operating results, and honest management. Right now, there is no margin of safety. In the words of Graham, price is what you pay, value is what you get. Here, I get no earnings, no growth, and no dividend. I would pass and wait for a better business.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer